Understanding the Saskatchewan Option Clause in Real Estate Transactions
When buying or selling a property in Saskatchewan, it’s important to understand every clause in your real estate contract—especially the Option Clause. This clause, outlined in the Saskatchewan REALTORS® Association Form 801, plays a critical role in situations where a property remains on the market while a conditional offer is in place.
What is the Option Clause?
The Option Clause allows a seller to continue showing their property and receive other offers even after accepting an initial offer with conditions. If the seller accepts another offer, they can give written notice to the first buyer, triggering a set number of hours for that buyer to remove all conditions.
How It Works for Buyers
If you’re the first buyer, the clock starts ticking the moment the written notice is received—by you, your REALTOR®, or your REALTOR®’s brokerage. This countdown includes non-business days, so weekends and holidays count toward your deadline.
If you fail to remove the conditions within that timeframe, the contract becomes null and void, allowing the seller to proceed with the second offer.
How It Works for Sellers
For sellers, this clause provides flexibility and leverage. You can keep marketing your property and potentially secure a backup offer. If a second offer comes in, you have a clear path to proceed without being tied indefinitely to an uncertain conditional sale.
Why It Matters
The Option Clause protects sellers from being locked into a stagnant deal while giving buyers a fair—but time-sensitive—opportunity to firm up their offer. It’s essential that both parties understand the timelines, communication requirements, and legal implications of this clause.
Key Takeaways
-
For buyers: Be ready to act quickly if you receive notice.
-
For sellers: This clause keeps your options open while respecting the original agreement.
-
For both: Always clarify the number of hours agreed upon in the clause, and ensure communications are documented in writing.
FAQs
What is the Option Clause in Saskatchewan real estate?
It’s a clause that allows sellers to keep marketing their property and accept backup offers while the first offer has conditions.
How much time does a buyer have to remove conditions after notice?
The contract specifies the number of hours, and it includes weekends and holidays.
Can the seller cancel the first offer without notice?
No. Written notice must be given to the buyer or their representative before the countdown starts.
Does the Option Clause benefit the buyer?
Yes. It ensures buyers have a fair chance to firm up their offer before the seller accepts another deal.
Leave A Comment